Regulatory Alerts2022-12-15
Added · Updated
CSA Staff Notice 81-335: Investment Fund Settlement Cycles
Canadian Securities Administrators staff (CSA staff) are publishing this notice to set out their views on amending securities laws to require T+1 settlement for mutual funds, concurrent with draft amendments to Regulation 24-101 facilitating the shortening of the standard settlement cycle for equity and long-term debt to T+1. While the CSA expects secondary market trading in exchange-listed investment funds to settle on T+1, they are not proposing to amend Regulation 81-102 to mandate T+1 for primary distributions and redemptions of mutual fund securities at this time. Instead, CSA staff encourage mutual funds to voluntarily settle primary distributions and redemptions on T+1 where practicable, recognizing the operational difficulties for funds with significant holdings in longer settlement cycle jurisdictions.